BlackRock World Mng Portfolio Update
May 16 2023 - 9:29AM
UK Regulatory
TIDMBRWM
The information contained in this release was correct as at 30 April 2023.
Information on the Company's up to date net asset values can be found on the
London Stock Exchange website at:
https://www.londonstockexchange.com/exchange/news/market-news/
market-news-home.html.
BLACKROCK WORLD MINING TRUST PLC (LEI - LNFFPBEUZJBOSR6PW155)
All information is at 30 April 2023 and unaudited.
Performance at month end with net income reinvested
One Three One Three Five
Month Months Year Years Years
Net asset value -3.7% -12.5% -5.3% 107.4% 93.3%
Share price -2.2% -10.3% -4.2% 144.3% 130.7%
MSCI ACWI Metals & Mining 30% Buffer 10/40 -2.8% -9.5% -4.2% 75.8% 61.9%
Index (Net)*
* (Total return)
Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index,
Datastream
At month end
Net asset value (including income)1: 639.67p
Net asset value (capital only): 628.27p
Share price: 653.00p
Premium to NAV2: 2.1%
Total assets: £1,370.3m
Net yield3: 6.0%
Net gearing: 14.6%
Ordinary shares in issue: 190,458,036
Ordinary shares held in Treasury: 2,553,806
Ongoing charges4: 1.0%
Ongoing charges5: 0.8%
1 Includes net revenue of 11.40p.
2 Premium to NAV including income.
3 Based on a second and third interim dividend of 5.50p per share declared on
23 August 2022 and 16 November 2022 respectively, a final dividend of 23.50p
per share declared on 2 March 2023 with ex-date 9 March 2023 and pay date of 26
April 2023 in respect of the year ended 31 December 2022, and a first interim
dividend of 5.50p per share declared on 18 April 2023 with ex-date 4 May 2023
and pay date of 31 May 2023 in respect of the year ending 31 December 2023.
4 The Company's ongoing charges are calculated as a percentage of average daily
net assets and using the management fee and all other operating expenses,
excluding finance costs, direct transaction costs, custody transaction charges,
VAT recovered, taxation and certain other non-recurring items for the year
ended 31 December 2022.
5 The Company's ongoing charges are calculated as a percentage of average daily
gross assets and using the management fee and all other operating expenses,
excluding finance costs, direct transaction costs, custody transaction charges,
VAT recovered, taxation and certain other non-recurring items for the year
ended 31 December 2022.
Country Analysis Total Sector Analysis Total
Assets (%) Assets (%)
Global 67.2 Diversified 35.2
Australasia 12.0 Copper 23.0
Latin America 8.0 Gold 16.3
United States 5.3 Steel 7.8
Canada 4.1 Industrial Minerals 6.9
Other Africa 2.7 Aluminium 3.9
Indonesia 0.9 Iron Ore 2.4
South Africa 0.3 Platinum Group Metals 1.9
United Kingdom 0.2 Nickel 1.5
Net Current Liabilities -0.7 Mining Services 1.0
----- Uranium 0.6
100.0 Zinc 0.2
===== Net Current Liabilities -0.7
-----
100.0
=====
Ten largest investments
Company Total Assets %
Vale:
Equity 6.7
Debenture 2.2
BHP 8.1
Glencore 6.7
Teck Resources 5.6
ArcelorMittal 4.2
Freeport-McMoRan 3.9
OZ Minerals:
Equity 2.3
Royalty 1.5
First Quantum Minerals:
Equity 2.7
Bond 0.9
Newmont Mining 3.3
Wheaton Precious Metals 3.3
Asset Analysis Total Assets (%)
Equity 94.3
Preferred Stock 3.3
Bonds 3.1
Net Current Liabilities -0.7
-----
100.0
=====
Commenting on the markets, Evy Hambro and Olivia Markham, representing the
Investment Manager noted:
Performance
The Company's NAV declined by 3.7% in April, underperforming its reference
index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return),
which declined by 2.8% (performance figures in GBP).
April was a challenging month for the mining sector as economic data from China
was softer than expected. China's manufacturing PMI, for example, fell to 49.5,
down from 50.0 in March. Industrial mined commodity prices were weak, with the
copper price falling -4.7% and the iron ore (62%fe) price sliding down -17.3%.
China also announced plans to cap 2023 domestic steel production (for which
iron ore is a key input) at around 2022 levels to limit potential oversupply
and contain carbon emissions.
Battery minerals prices also continued to fall sharply, with lithium prices in
China falling -21.7%, on faltering sentiment surrounding electric vehicle
demand. Further weakness in the US dollar helped precious metals perform
strongly, however, with gold, silver and platinum prices rising +0.5%, +3.8%
and +9.5% respectively. Lastly, Q1 production results were reported during the
month and were generally soft, with the first quarter suffering from typical
seasonal weather impacts, as well as ongoing Covid impacted operational issues.
Strategy and Outlook
We do not expect the mining sector to be immune to deteriorating global
economic growth. However, whilst recession looms for developed markets, the
most important economy for mining, China, is moving in the opposite direction,
re-opening following a year of lockdowns and a strict zero-covid policy.
Meanwhile, mined commodity markets are generally tight, with inventories for
many commodities at historic lows. At the same time, mined supply is being
constrained by the underinvestment of recent years and continued capital
discipline. Mining companies are in an excellent financial position, in our
view, with high levels of free cash flow, rock-solid balance sheets and a
continued focus on returning capital to shareholders.
Last year, we saw greater appreciation of the role mining companies will need
to play in supplying the materials required for lower carbon technologies like
wind turbines, solar panels and electric vehicles. In 2023 we expect Brown to
Green to emerge as a key theme, where mining companies focus on reducing the
greenhouse gas emissions intensity associated with their production. We expect
to see a re-rating for the mining companies able to best navigate this and are
playing this in the portfolio.
All data points are in USD terms unless stated otherwise.
16 May 2023
Latest information is available by typing www.blackrock.com/uk/brwm on the
internet. Neither the contents of the Manager's website nor the contents of any
website accessible from hyperlinks on the Manager's website (or any other
website) is incorporated into, or forms part of, this announcement.
END
(END) Dow Jones Newswires
May 16, 2023 09:29 ET (13:29 GMT)
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